BlackRock (BLK) is a multinational investment management company. Its primary activity is asset management, offering both institutional and retail investors a wide range of financial products and services.
The company has offices in more than 30 countries and serves clients in over 100 countries across the globe. Blackrock's largest geographical market is the Americas - contributing more than 65% to revenue.
Technically, the price is developing a rising wedge pattern, which makes for an attractive investment opportunity (see the grey dotted converging trendlines and the insert).
A rising wedge pattern can assist in identifying bearish reversals once matured. It is formed when the price creates higher highs and higher lows, but the highs converge at a shallower angle than the lows. The expectation is for the price action to progress to the upper range of this pattern.
The stock is trading above its 200-day simple moving average (SMA) of $670, suggesting consistent buying interest
Relative Strength Index (RSI) forward calculations suggest that the share will be in overbought territory around $850. Our profit target is $765.
We suggest a low at-risk allocation for this trade. Increase exposure for a break above $693.
Share Information
| Share code | BLK |
|---|---|
| Industry | Financial Services |
| Market Capital (ZAR) | 103.24 billion |
| One year total return | 3.72% |
| Return year-to-date | -1.93% |
| Current price(ZAR) | 684.92 |
| 52 weeek high(ZAR) | 785.65 |
| 52 week low(ZAR) | 503.12 |
| Financial year end | December |
| Closing paragraph | Recent returns have been modest. Moderate volatility is expected in the price going forward. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (GBP) | 35.36 | 35.00 | 40.12 | 45.14 |
| Growth (%) | -1.02 | 14.64 | 12.50 | |
| Dividend Per Share (GBP) | 19.52 | 20.17 | 21.31 | 22.66 |
| Growth (%) | 3.35 | 5.62 | 6.36 | |
| Forward PE (times) | 19.57 | 17.07 | 15.17 | |
| Forward Dividend Yield (%) | 2.95 | 3.11 | 3.31 | |
| Closing paragraph | In the short term, earnings are expected to decline before recovering strongly in the outer years of the three-year forecast horizon. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
NCLH - Take Profit (Close the position) |
HLMN - BUY (Continue to hold) |
STZ - Take Profit (Close the position) |
|---|---|---|---|
| Entry | 14.47 | 8.01 | 228.16 |
| Current | 16.75 | 8.59 | 242.50 |
| Movement | 15.8% | 7.2% | 6.3% |
| Summary text | We closed the trade early to lock in profit and reduce risk. |
The price is exhibiting repetitive cycles in sequences. The stock recently crossed its 200-day simple moving average. The start of upside price momentum supports the trade idea.
Our profit target is $10 with a trailing stop-loss at $7.85. Exit the position on 6 October 2023. |
We closed the trade early due to declining technical strength. |
| Share Name and position |
VXF - Buy (Continue to hold) |
NDAQ - Buy (Continue to hold) |
HACK - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 139.26 | 55.03 | 47.58 |
| Current | 144.95 | 57.13 | 49.39 |
| Movement | 4.1% | 3.8% | 3.8% |
| Summary text |
An incomplete symmetrical triangle pattern is of interest. The ETF is trading above its 200-day simple moving average, with continued upside momentum supporting the bullish trend.
Our profit target is $153 with a trailing stop-loss at $139. Exit the position on 2 November 2023. |
The stock is above key support levels. It is, however, still trading below its 200-day simple moving average which it is slowly approaching with a sustained upward trajectory.
Our profit target is $60 with a trailing stop-loss of $54.70. Exit the position on 8 September 2023. |
The price remains above key support levels. The stock is trading above its 200-day simple moving average, with upside price momentum supporting a bullish trend direction.
Our profit target is $55 with a trailing stop-loss of $47.40. Exit the position around 4 August 2023. |
